Esterline Technologies Corporation (NYSE: ESL) and Cubic Corporation (NYSE:CUB) are both aerospace companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Valuation & Earnings

This table compares Esterline Technologies Corporation and Cubic Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Esterline Technologies Corporation $2.01 billion 1.27 $312.43 million $4.48 19.07
Cubic Corporation $1.45 billion 0.81 $53.94 million ($1.19) -36.47

Esterline Technologies Corporation has higher revenue and earnings than Cubic Corporation. Cubic Corporation is trading at a lower price-to-earnings ratio than Esterline Technologies Corporation, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Esterline Technologies Corporation has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Cubic Corporation has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Dividends

Cubic Corporation pays an annual dividend of $0.27 per share and has a dividend yield of 0.6%. Esterline Technologies Corporation does not pay a dividend. Cubic Corporation pays out -22.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

90.9% of Esterline Technologies Corporation shares are owned by institutional investors. Comparatively, 88.9% of Cubic Corporation shares are owned by institutional investors. 1.4% of Esterline Technologies Corporation shares are owned by company insiders. Comparatively, 7.7% of Cubic Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Esterline Technologies Corporation and Cubic Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Esterline Technologies Corporation 1 3 1 0 2.00
Cubic Corporation 0 0 4 0 3.00

Esterline Technologies Corporation presently has a consensus target price of $92.60, suggesting a potential upside of 8.37%. Cubic Corporation has a consensus target price of $52.25, suggesting a potential upside of 20.39%. Given Cubic Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Cubic Corporation is more favorable than Esterline Technologies Corporation.

Profitability

This table compares Esterline Technologies Corporation and Cubic Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Esterline Technologies Corporation 6.65% 9.18% 5.06%
Cubic Corporation -2.20% -4.74% -2.22%

Summary

Esterline Technologies Corporation beats Cubic Corporation on 9 of the 15 factors compared between the two stocks.

Esterline Technologies Corporation Company Profile

Esterline Technologies Corporation is a specialized manufacturing company. The Company designs, manufactures and markets engineered products and systems for application within the industries it serves. The Company operates through three segments: Avionics & Controls, Sensors & Systems, and Advanced Materials. The Company serves aerospace and defense customers. The Company’s Avionics & Controls business segment includes avionics systems, control and communication systems, and interface technologies capabilities. The Company’s Sensors & Systems business segment includes power systems, connection technologies and advanced sensors capabilities. The Company’s Advanced Materials business segment includes engineered materials and defense technologies capabilities. The Company designs and manufactures ruggedized military personal communication equipment, primarily headsets, handsets and field communications.

Cubic Corporation Company Profile

Cubic Corporation (Cubic) designs, integrates and operates systems, products and services that provide situational awareness for its customers in the transportation and defense industries. The Company operates in three business segments across the global transportation and defense markets, which include Cubic Transportation Systems (CTS), Cubic Global Defense (CGD) and Cubic Global Defense Services (CGD Services). The Company’s CTS segment is a systems integrator of payment and information technology and services for travel solutions. The Company’s CGD Systems is focused on two primary lines of business: training systems and secure communications (SC) products. The Company’s CGD Services segment is a provider of training, operations, intelligence, maintenance, technical and other support services to the United States government and its agencies and allied nations. It also provides cross-domain hardware solutions to address multi-level security challenges across common networks.

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